The Bank of Uganda’s Treasury bond auction on September 3 generated Shs1,354,675,900,000 from accepted bids across three bond offerings, showcasing continued confidence in Uganda’s debt market.
The auction, which reopened 3-year, 10-year, and 20-year government bonds, saw particularly strong demand for the 10-year bond, which accounted for Shs909,240,300,000 of the total accepted bids. The 20-year and 3-year bonds recorded accepted bids of Shs355,372,100,000 and Shs90,063,500,000, respectively.
Auction Highlights; 3-Year Bond: Cut-off price 101.331; yield 16.000%, 10-Year Bond: Cut-off price, 100.336; yield 17.150% and 20-Year Bond: Cut-off price 86.570; yield 17.950%.
The robust bid-to-cover ratios across all maturities underscore sustained investor confidence in Uganda’s government securities, reflecting both local and regional interest in the country’s debt instruments. Analysts note that the strong appetite for medium-term (10-year) debt could indicate that investors are seeking a balance between attractive yields and manageable risk, given global interest rate pressures.
This successful auction also provides the government with additional resources to support fiscal objectives, including infrastructure development and budgetary financing, without exerting excessive pressure on domestic borrowing costs. The settlement date for the bonds was September 4, 2025.
